There is massive volume in the GE June $2.50 puts this afternoon. At $0.30 each there are major market participants betting on a potential GE bankruptcy. These put buyers are essentially betting on a GE BK as the puts would not be in the money over $2.20. We would likely have to redefine the word “fear” if this were to occur….
Bloomberg has more on the story here.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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